Department of the Army awards $68.59M contract for computer services to Science Applications International Corporation
Contract Overview
Contract Amount: $75,518,003 ($75.5M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2023-03-26
End Date: 2026-03-31
Contract Duration: 1,101 days
Daily Burn Rate: $68.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AWARDING MSP TICKET VOLUME
Place of Performance
Location: CLEARFIELD, DAVIS County, UTAH, 84015
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $75.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: AWARDING MSP TICKET VOLUME Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Services fall under 'Other Computer Related Services', a broad category within IT. 4. The contract duration is over 3 years, indicating a significant, ongoing need. 5. Awarding agency is the Department of the Army, a major component of the DoD. 6. The contractor, Science Applications International Corporation, is a large, established entity in the federal contracting space.
Value Assessment
Rating: good
The contract value of $68.59 million over approximately 3 years represents a significant investment in IT services. Benchmarking this against similar 'Other Computer Related Services' contracts awarded by the Department of the Army or other DoD components would provide a clearer picture of value for money. The firm fixed price structure is generally favorable for the government when scope is well-defined, as it caps potential cost overruns. However, without specific performance metrics or detailed service breakdowns, a precise value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for a comparison of technical capabilities and pricing structures to select the best value.
Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it typically leads to lower prices and better quality services due to a wider pool of potential offerors vying for the contract.
Public Impact
The Department of the Army benefits from essential computer-related services to support its operations. This contract likely supports various IT functions, potentially including system maintenance, software development, or technical support. The geographic impact is primarily within Utah, where the contract is managed or services are delivered. Workforce implications may include direct employment by Science Applications International Corporation and potential indirect impacts on the IT sector in Utah.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in 'Other Computer Related Services' if not tightly managed.
- Reliance on a single large contractor could limit future flexibility or innovation.
- The long duration could lead to technology obsolescence if not actively managed.
Positive Signals
- Firm Fixed Price contract structure mitigates cost overrun risk for the government.
- Full and open competition suggests a robust bidding process and potential for competitive pricing.
- Award to a large, experienced contractor like SAIC may indicate a lower risk of performance issues.
Sector Analysis
The IT services sector is a vast and critical component of federal spending. Contracts for 'Other Computer Related Services' (NAICS 541519) encompass a wide range of activities beyond standard software development or IT support, including IT consulting, system integration, and data processing. The federal government is a major consumer of these services, with significant spending across all agencies. This contract fits within the broader trend of agencies outsourcing complex IT functions to specialized firms to leverage expertise and manage costs.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, Science Applications International Corporation, is a large business. While there is no direct set-aside, the contract may still offer subcontracting opportunities for small businesses, depending on SAIC's subcontracting plan and the specific nature of the services required. The absence of a set-aside means that small businesses did not have a preferential pathway to bid as the prime contractor.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract vehicle, specific oversight details might be embedded within the parent contract's terms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Defense IT Services Contracts
- Army IT Modernization Programs
- Information Technology Professional Services
- Computer Systems Design Services
Risk Flags
- Potential for scope creep
- Risk of technology obsolescence
- Contractor performance risk
- Value for money assessment requires further benchmarking
Tags
it-services, department-of-the-army, science-applications-international-corporation, full-and-open-competition, firm-fixed-price, other-computer-related-services, utah, delivery-order, large-business, defense-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. AWARDING MSP TICKET VOLUME
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $75.5 million.
What is the period of performance?
Start: 2023-03-26. End: 2026-03-31.
What is the historical spending pattern of the Department of the Army on 'Other Computer Related Services' (NAICS 541519)?
The Department of the Army, as a major component of the Department of Defense, consistently allocates substantial funds towards IT services, including those categorized under NAICS 541519. Historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends in spending for this specific category. This often includes a mix of competitive and sole-source awards, with spending fluctuating based on modernization initiatives, operational needs, and budget allocations. Analyzing past spending would provide context for the $68.59 million award, indicating whether it represents a typical investment, an increase, or a decrease in this service area for the Army. Factors such as the duration of the contract and the specific services rendered would also influence the overall historical expenditure.
How does the per-unit cost or pricing structure of this contract compare to similar IT services contracts awarded by the DoD?
Benchmarking the pricing structure of this $68.59 million contract against similar 'Other Computer Related Services' contracts awarded by the Department of Defense is crucial for assessing value. Since this is a Firm Fixed Price (FFP) contract, the government's primary concern is whether the total price reflects a competitive market rate for the defined scope of work. A detailed comparison would involve analyzing the labor categories, hours, and rates (if disclosed or inferable) against industry benchmarks and other government contracts. Factors such as the contractor's overhead, profit margins, and the complexity of the services will influence the pricing. Without access to the specific details of the SOW and the proposed pricing, a precise comparison is difficult, but the 'full and open competition' aspect suggests that the pricing was vetted against multiple offers.
What is Science Applications International Corporation's track record with the Department of the Army and for similar IT services?
Science Applications International Corporation (SAIC) is a well-established large business with a significant history of contracting with the Department of Defense, including the Department of the Army. Their track record typically involves a wide array of IT services, systems engineering, and technical support. Analyzing SAIC's past performance ratings, any past performance issues or awards on similar contracts, and their overall financial stability would provide insight into their capability to execute this specific $68.59 million award. Federal procurement databases often contain past performance information, which contracting officers use in source selection. SAIC's extensive experience suggests a lower performance risk, but a thorough review of their specific history with the Army for 'Other Computer Related Services' would be necessary for a complete assessment.
What are the potential risks associated with a multi-year, firm-fixed-price contract for 'Other Computer Related Services'?
A multi-year, firm-fixed-price (FFP) contract for 'Other Computer Related Services' carries several potential risks. For the government, the primary risk is that the fixed price may not accurately reflect the evolving needs or complexities of the services over the contract's duration (1101 days). If the scope of work is not meticulously defined and managed, the contractor might deliver services that are technically compliant but not optimally aligned with current requirements, or the government might be locked into a price that becomes uncompetitive if market rates decrease. Conversely, if the contractor significantly underestimates the effort or encounters unforeseen challenges, they may incur losses, potentially impacting their motivation or ability to perform. Technology obsolescence is another risk; if the services are tied to specific technologies that rapidly become outdated, the contract's value diminishes. Effective oversight and change management are critical to mitigate these risks.
How does the geographic location of the award (Utah) influence the contract's execution and oversight?
The contract's designation with 'UT' for Utah suggests that either the primary place of performance or the administrative contracting office is located in Utah. This geographic focus can influence the contract's execution by potentially leveraging local IT talent pools and resources. Oversight might be managed by contracting officers and technical representatives physically located in or near Utah, or it could involve remote oversight supported by local points of contact. The specific impact depends on whether the services are performed on-site at a government facility in Utah or remotely. If SAIC has a significant presence in Utah, it could streamline operations and potentially reduce travel costs. However, it also means that the government's ability to conduct physical inspections or on-site reviews might be geographically constrained if the primary performance location is distant from the contracting agency's main offices.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1412 LEGEND HILLS DR, CLINTON, UT, 84015
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $75,518,003
Exercised Options: $75,518,003
Current Obligation: $75,518,003
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: W52P1J22D0040
IDV Type: IDC
Timeline
Start Date: 2023-03-26
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-13
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